File(s) under permanent embargo
Reason: This item is currently closed access.
How long will the marriage of Sino-Foreign JVs in China last? A theoretical and empirical investigation
journal contributionposted on 2015-02-11, 10:26 authored by Ursula Ott, Xiaohui Liu, Trevor Buck
This paper studies the factors affecting the longevity of international joint ventures (IJVs) in China and investigates the strategic interactions of the players in an IJV (foreign parent, local parent and IJV management) by adopting game theory and using empirical analysis based on national perceptions of time horizons. The theoretical part shows equilibria for the games played by the parents. The empirical evidence, based on a sample of Chinese-US and EU IJVs, as well as Chinese-Japanese and South Korean IJVs, is consistent with the propositions derived from our theoretical models. Our empirical findings show that the longevity of an IJV is affected by senior management control. Access to local knowledge is also a crucial factor affecting longevity. Furthermore, the degree of long-term orientation (LTO) of the parents influences the longevity of Sino-Foreign IJVs. The contributions made by both foreign and local parent firms are also found to influence the longevity. © 2014.
- Business and Economics
Published inInternational Business Review
Pages873 - 886
CitationOTT, U.F., LIU, X. and BUCK, T., 2014. How long will the marriage of Sino-Foreign JVs in China last? A theoretical and empirical investigation. International Business Review, 23 (5), pp. 873 - 886.
Publisher© Elsevier Ltd.
- VoR (Version of Record)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/